Qualys (QLYS) Stock Forecast & Price Target

Qualys reported a 13% year-over-year growth in Current Billings, reaching $192.8 million, which exceeded consensus estimates and highlights the company’s strong renewal performance. The firm's revenue also grew by 10% year-over-year to $159.9 million, surpassing forecast expectations, while its gross margin improved significantly to 83.5%, demonstrating operational efficiency. Furthermore, Qualys anticipates receiving FedRAMP High certification in 2025, which could create new growth opportunities and indicates the company's commitment to robust investment in its channel and R&D despite recent leadership changes.

Qualys is facing a negative outlook due to revenue growth deceleration, with guidance for 1Q25 reflecting a slight drop in sequential revenue alongside a year-over-year increase that falls short of consensus expectations. The expected EPS for 1Q25 is forecasted between $5.50 and $5.90, which is a 7% decline year-over-year and below analyst forecasts, largely driven by anticipated operating expense growth of 18% to 20%. Additionally, the company's long-term revenue growth assumptions have been reduced from 8% to 7%, indicating concerns over decreasing demand and competitive pricing pressures impacting net revenue retention rates.